When you first set up a small business, everything is likely to be relatively modest and low-key. This is because you tend to have limited funds when it comes to almost every area of business operation, so you’re going to want to minimise on pretty much everything other than product quality and customer service.
However, as you start processing increasing numbers of sales and generating more profit, you’re going to find yourself with a little more money on your hands.
Now, it’s easy to simply transfer this straight into your personal account. After all, you probably started a business to provide yourself with a better quality of life in the first place. But if you want to continue making money in the long run, it’s much better to reinvest a large percentage of these profits back into your business.
Not only will doing this improve your business, but it will allow you to expand, moving in line with increased customer demand and establishing yourself as a significant presence in your area of the market. But how can you go about spending these profits the right way? Here’s everything you need to know about expanding your business as you experience increased levels of demand!
Expand Your Product Line
A good first step to take is to expand your product line. This will give people more choice, and (as long as you come up with innovative and desirable products) will consequently result in further sales. You will draw in new customers, as well as giving existing customers something else to come back for in the future. If you have the same products on offer year-round, sales may start off well, but they will slowly dip, as people have already got what you have to offer.
So, launch a new line! Stick with the same process that you took to get this far in the first place – design your products, conduct market research to ensure that there is demand for them, package and price them in an attractive manner, and conduct marketing and advertising campaigns ahead of their launch and when they are launched.
Become an Employer
As demand increases and you start offering customers more and more, you’re going to find yourself with a little too much responsibility on your own shoulders. This is when you might want to consider taking on some helping hands. Sure, this may feel like a difficult decision to make. After all, you’ve done everything yourself or with the one-off helping hand of an outsourced freelancer until up until this point, which means you maintain control over pretty much any situation associated with your business and how it is operated.
But as you expand, you simply won’t be able to take responsibility for absolutely everything. This would be detrimental to your business, as you will be solely focussed on administrative tasks to keep your business in motion, rather than progressive tasks to help your business move forward. Now, there are various different types of staff that you might want to take on, but each will have to have some sort of contract. This will detail their responsibilities, working hours, salary or pay per hour, and other terms and conditions associated with their role.
You have two different options when it comes to taking on staff. You can use a recruitment agency who will carry out all of the work on your behalf for a fee, or you can go it alone and find staff yourself. If you find staff yourself you should seriously consider reading a hiring blog. This will show you the ins and outs of the recruitment process, helping you to get it right first time around.
Upgrade Your Commercial Premises
If you’re taking on staff, you’re probably going to have to upgrade your commercial premises to accommodate them. If you are selling products or services, a commercial property upgrade also makes you appear like a more serious business, and can help to draw more customers and clients through the door too.
Bear in mind that an upgrade is absolutely essential if you currently operate your small business from home. When you are first experiencing increased demand, you might want to be relatively sensible with your choice of commercial property. You should only agree to a short initial contract on any given property, as this allows you to downgrade your property if the business doesn’t thrive as expected, or upgrade again if things go better than expected. You don’t want to get tied into a year long contract during a volatile period of business.
Collaborate With Others
As you start to make a name for yourself, notable business and individuals are likely to take interest in collaborating with you. This is generally a good idea, as you can expose your brand to their customer or fan base as well as your own. Just make sure that any company or person that you do intend to collaborate with has a notable presence of their own for positive reasons.
Many small businesses make the mistake of collaborating with social media influencers with a large following because they assume that their followers like them. This isn’t always necessarily the case. Many people have large followings because they are controversial and people want to keep up with their latest misdemeanours for the sake of controversy and shock factor. You only want to collaborate with individuals who have positive associations that will reflect well on your brand.
Remember, if you collaborate with someone and their behaviour takes a turn for the worst, cut off all connections with them before your own brand’s name can be marred.
These are just a few preliminary steps that you might want to take when it comes to expanding your small business. Each requires a lot of time, thought, and entails with you a fair amount of responsibility. But as long as you make wise decisions, everything should go swimmingly!